CONTINUE two-German parties to submit a memorandum of understanding Wednesday

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BERLIN, Nov 24 (Reuters) – German party leaders on Wednesday vowed to form a coalition government that sees Social Democrat Olaf Scholz as Angela Merkel as chancellor, according to a petition released by the Social Democrats.

A press conference scheduled for 3pm (1400 GMT) will follow the final talks between Social Democrats (SPD), environmentalist Greens and Free Democrats (FDP), the SPD said in a statement.

The coalition will establish Germany’s first three-state government since the 1950s and oust Merkel’s Conservatives after 16 years.

The alliance – called the traffic union after the three types of groups – has pledged to develops Europe’s largest economy by redesigning its infrastructure and improving climate protection measures.

Sources told Reuters Tuesday that the parties agreed to commit to reducing coal-fired power by 2030 and eliminating gas-fired power generation by 2040.

Observers fear that the parties will struggle to resolve their disputes, which could hamper the European Union’s response to threats from the epidemic to the rise of power.

However, the parties have already brushed off predictions that talks will end next year or fail, promising to offer a two-month deal in September. (Reports by Holger Hansen, Markus Wacket; Author Maria Sheahan, edited by Emma Thomasson and Giles Elgood)

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